SISSETON-WAHPETON OYATEOF THE LAKE TRAVERSE RESERVAnON

CHAPTER 58 - GAMING ORDINANCE

TITLE ONE: GENERAL PROVISIONS 1

58-01-01 Title 158-01-02 Purpose and Policy 158-01-03 Effect of Headings 158-01-04 Liberal Interpretation 158-01-05 Severability 158-01-06 Citation or Use of Language From Other Laws 258-01-07 Effective Date 258-01-08 Conflicting Laws 258-01-09 Agent for Service 258-01-10 Use of Gaming Revenue and Per Capita Payments 258-01-11 Dispute Resolution 358-01-12 Ownersbip of Gaming 358-01-13 Individually Owned Gaming 358-01-14 Audit and Contracts Exceeding $25,000.00 Annually 358-01-15 No Limitation on the Number of Gaming Operations 358-01-16 Protection oftbe Environment and Public Healtb and Safety 3

TITLE Two: DEFINITIONS 4

58-02-01 Purpose and Interpretation 4TITLE THREE: GAMING REGULATORY AUTHORITY 5

58-03-01 Gaming Regulatory Autbority 558-03-02 Qualification and Restrictions 558-03-03 Selection and Composition of tbe Regulatory Autbority 558-03-04 Other Regulatory Authority Employees 658-03-05 Terms and Vacancies 658-03-06 Removal Procedure '" 658-03-07 Conflict ofInterest and Gift Probibition 758-03-08 Powers and Duties of the Regulatory Authority 758-03-09 Violation 958-03-10 Hearings 9

TITLE FOUR: LiCENSiNG 9

58-04-01 License Required for Gaming Operations and Distribution of GamingEquipment 958-04-02 Application Forms For Primary Management Officials And Key Employees 958-04-03 Background Investigations 1058-04-04 Eligibility Determination 1258-04-05 Procedures For Forwarding Applications and Reports for Key Employeesand Primary Management Officials to the NIGC. 1258-04-06. Report to tbe National Indian Gaming Commission 12

58-04-0758-04-0858-04-0958-04-1058-04-1158-04-1258-04-13

Granting a Gaming License 13License Suspension 13Emergency Action, Suspension Without Hearing 14License Required For Distributors of Gaming Equipment. 14Reimbursement for Costs of License Investigations 14Fraud on Application 14License as a Revocable Privilege 14

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TITLE ONE

GENERAL PROVISIONS

58-01-01 Title.

This Ordinance shall be known and cited as the Gaming Ordinance of the Sisseton-WahpetonOyate of the Lake Traverse Reservation (the "Sisseton-Wahpeton Oyate").

58-01-02 Purpose and Policy.

The purpose of this Gaming Ordinance is to authorize and regulate Class Il and Class III gamingwithin the Sisseton-Wahpeton Oyate's jurisdiction. The Gaming Ordinance shall assist theSisseton-Wahpeton Oyate in generating revenue for tribal government, promote economicdevelopment and self government, shield gaming activities from crime, and ensure that gaming isconducted fairly and honestly by both the gaming operation, the licensees, and the players. Itshall be the policy of the Sisseton-Wahpeton Oyate to fully comply with all applicable federallaw, including applicable Internal Revenue Code provisions concerning reporting andwithholding of taxes with respect to the winnings from gaming, and to comply with all applicableState requirements when established by a Tribal-State Compact.

58-01-03 Effect of Headings.

Title and section headings are provided for reference purposes only and shall not be deemed togovern, limit, or modify the provisions of this Ordinance.

58-01-04 Liberal Interpretation.

This Ordinance shall be liberally construed to benefit the welfare of the Sisseton-WahpetonOyate in a manner consistent with its overall purpose and the provisions of the Indian GamingRegulatory Act (the "lGRA") and the Sisseton-Wahpeton Oyate's Gaming Compacts.

58-01-05 Severability.

The provisions of this Ordinance are severable. Should any provision, or the application of anyprovision to any person or circumstance, be held invalid, such a holding shall not affect theremainder of its provisions or the application of its provisions to another person or circumstance,and shall not require subsequent re-approval ofthe Ordinance by the Tribal Council.

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58-01-06 Citation or Use of Language From Other Laws.

Citation to statutory or administrative language, definitions, procedure, or provisions of Federalor State law in this Ordinance does not establish jurisdiction, which otherwise does not exist, insuch Federal or State government. Nothing in this Ordinance may be deemed a waiver of theSisseton-Wahpeton Oyate's sovereign immunity, and if any Court of competent jurisdictionconstrues this provision as conflicting with any other provision in this Ordinance, then thisexpress retention of sovereign immunity shall control and prevail.

58-01-07 Effective Date.

This Ordinance shall be in full force and effect on the date of formal approval and adoption bythe Tribal Council, and shall remain in effect pending approval from the National Indian GamingCommission (the "NIGC").

58-01-08 Conflicting Laws.

Should any Tribal law, Ordinance, Resolution or action conflict with this Ordinance, theprovisions of this Ordinance shall control and prevail. On the effective date, all prior GamingOrdinances are repealed. Should a provision of a Gaming Compact, the lGRA or the NIGC'sregulations, conflict with this Ordinance, the provisions of the Compact, the lGRA or the NIGC'sregulations, as the case may be, shall control and prevail.

58-01-09 Agent for Service.

Unless otherwise designated by Resolution of the Tribal Council, the Chairman shall serve as theagent for service of any official determination, order or notice of violation.

58-01-10 Use of Gaming Revenue and Per Capita Payments.

A. Net revenues from Class II and Class III gaming shall be used only for the followingpurposes:

I. to fund tribal government operations and programs;2. provide for the general welfare of the Sisseton- Wahpeton Oyate and its members;3. promote tribal economic development;4. donate to charitable organizations; or5. help fund operations oflocal government agencies.

B. If the Sisseton-Wahpeton Oyate elects to make per capita payments to its members, itshall authorize such payments only upon approval of a plan submitted to the Secretaryof the Interior as required by the IGRA.

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58-01-11 Dispu te Resolution.

A gaming operation shall seek to immediately resolve any dispute between any member of thegaming public and the gaming operation or its licensees. Any patron who is dissatisfied with thedispute resolution proposed by a gaming operation may present such dispute for final resolutioneither to the Tribe's Court or the Regulatory Authority acting within the regulatory jurisdictionconferred by this Ordinance. Provided that any such dispute that involves the Tribe's gaminglaws, rules, regulation or gaming compact provision must first be brought to the RegulatoryAuthority, which is subject to appeal to the Tribe's Court. The Regulatory Authority shallprovide the Tribal Council with an annual report of gaming disputes under this Section.

58-01-12 Ownership of Gaming.

The Sisseton- Wahpeton Oyate shall have the sole proprietary interest in and responsibility for theconduct of any gaming operation authorized by this Ordinance.

58-01-13 Individually Owned Gaming.

No licenses may be issued to allow the operation of individually owned gaming operations.

58-01-14 Audit and Contracts Exceeding $25,000.00 Annually.

A. The Sisseton-Wahpeton Oyate shall cause to be conducted an annual, independent auditof gaming operations and shall submit the resulting audit reports to the NlOC.

B. All gaming related contracts that result in the purchase of supplies, services, orconcessions for a in excess of $25,000.00 annually, except contracts for professional legalor accounting services, shall be specifically included within the scope of the annualindependent audit.

58-01-15 No Limitation on the Number of Gaming Operations.

Nothing in this Ordinance shall limit the number of gaming operations the Regulatory Authoritycan license to conduct gaming on the Lake Traverse Reservation or lands subject to thegovernmental control of the Sisseton-Wahpeton Oyate, pursuant to the provisions of thisOrdinance and lORA, but in all cases, each separate facility, place, or location shall require aseparate license, issued specifically for that place, facility, or location.

58-01-16 Protection of the Environment and Public Health and Safety.

Class II and Class III gaming facilities shall be constructed, maintained and operated in a mannerthat adequately protects the environment and public health and safety.

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58-02-01

TITLE TwoDEFINITIONS

Purpose and Interpretation.

Unless specifically defined, words or phrases used in this Ordinance shall be interpreted to givethem the meaning they have in common usage, to be consistent with the IGRA, and to give thisOrdinance its most reasonable application. The following words and phrases when used in thisOrdinance shall have the meanings respectively ascribed to them in this section:

A. "Applicant" shall mean any person who is required to be licensed by this Ordinance, andwho submits a request for the grant or renewal of such license;

B. "Distributor" shall mean a person or entity that sells, leases, markets or otherwisedistributes gambling devices, equipment, games or implements of gambling which areusable in the lawful conduct of gaming under this Ordinance;

C. "Gaming" shall mean the act of paying money for the opportunity to participate in agame, the outcome of the game is decided by chance or chance is a material element, andthe winner of the game is entitled to a pre-determined prize. Gaming does not includegames played in private homes or residences, or Class I games;

D. "Gaming Compact" shall mean any agreement, as amended or renegotiated, concerningClass III Gaming between the Sisseton-Wahpeton Oyate and the State ofNorth Dakota orthe State of South Dakota;

E. "Gaming equipment" shall mean bingo cards or sheets, devices for selecting bingonumbers, pull-tabs, jar tickets, paddlewheels, tipboards, electronic video equipment, slotmachines, video games of chance, equipment employed to conduct the game ofblackjack,or any other equipment used to operate a game of chance;

F. "Gaming Operation" shall mean any entity wholly owned by the Sisseton-WahpetonOyate which operates Class II or Class ill gaming, as those terms are defined in theIGRA;

G. "Key Employees" shall mean the following persons: (1) bingo caller; (2) counting roomsupervisor; (3) chiefof security; (4) custodian of gaming supplies or cash; (5) floormanager; (6) pit boss; (7) dealer; (8) croupier; (9) approver of credit; (10) custodian ofgaming equipment including persons with access to cash and accounting records withinsuch devices; (II) if not otherwise included, any other person whose total cashcompensation is in excess of $50,000 per year; and (12) jfnot otherwise included, thefour most highly compensated persons in the Gaming Operation;

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H. "License" shall mean the permission of the Regulatory Authority to do an act, which shallbe illegal without such license. With respect to real property of the Sisseton-WahpetonOyate, a License is a privilege to go on the premises for a certain purpose, but does notoperate to confer, vest, or grant any title, interest, or estate in such property;

1. "Licensee" shall mean a key employee, primary management official or other persongranted a License under this Ordinance;

J. "Person" shall mean any individual, partnership, corporation, association, or public orprivate organization; and

K. "Primary Management Officials" shall mean: (I) the person having managementresponsibility for a management contract; (2) any person who has authority to (a) hire andfire employees, or (b) set up working policy for the Gaming Operation; or (3) the chieffinancial officer or other person who has financial management responsibility.

TITLE THREE

GAMING REGULATORY AUTHORITY

58-03-01 Gaming Regulatory Authority.

The Sisseton-Wahpeton Oyate establishes the Gaming Regulatory Authority (the "RegulatoryAuthority"), to regulate this Ordinance and the Tribal-State Gaming Compacts as they affectTribal Gaming Operations. The Regulatory Authority shall consist of a three member GamingCommission, an Executive Director and their staff. All members of the Regulatory Authorityshall be restricted from gaming in a gaming operation, which is subject to this Ordinance. TheTribal Council may require each member of the Gaming Commission and the Executive Directorto be bonded. The Tribal Council retains the right to audit the Regulatory Authority.

58-03-02 Qualification and Restrictions.

To be considered qualified for appointment as a Gaming Commission member or as theExecutive Director, the potential appointee may not be a Tribal Council member, tribalexecutive, or district officer, nor be engaged in any gambling related business or employed by atribal gaming operation. No member of the Regulatory Authority, including its staff, shall havebeen convicted of a felony within 10 years prior to taking office, or convicted of any chargeinvolving theft, fraud or gambling.

58-03-03 Selection and Composition of the Regulatory Authority.

The Tribal Council shall appoint the Executive Director and the members of the GamingCommission. Appointment to the Regulatory Authority does not vest any rights in the appointee.To determine the qualification and suitability of each appointee to serve on the Regulatory

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Authority, the potential appointee must successfully complete a background investigation, whichis as stringent as that required of a primary management official.

58-03-04 Other Regulatory Authority Employees.

The Tribal Council delegates to the Executive Director and the members of the GamingCommission the power to hire and terminate its own staff. All potential employees mustsuccessfully complete a background investigation, which is as stringent as that required of a keyemployee, prior to working for the Regulatory Authority. The Tribal Council retains theauthority to terminate any Regulatory Authority employee for cause.

58-03-05 Terms and Vacancies.

Members ofthe Gaming Commission shall serve a four year term. The Tribal Council maystagger the terms to avoid simultaneous turnover. Upon completion of a term, the Tribal Councilmay re-appoint such member or appoint a new person. If a member of the Gaming Commissionor the Executive Director should die, resign, or be removed, the Tribal Council shall appointanother qualified person to fill the position, provided that the potential appointee successfullycompletes a background investigation, which is as stringent as that required of a primarymanagement official.

58-03-06 Removal Procedure.

The Tribal Council may suspend a member of the Gaming Commission for "cause," as that termis defined below. Within twenty-four hours of such a suspension, the Tribal Council shallprovide written notice to the suspended member of the Gaming Commission, which sets forth thereason(s) supporting suspension. Within fifteen days the Tribal Council shall hold a hearing todetermine whether the charges serving as the basis for suspension are substantiated, and whetherthe person should be removed. At the hearing, the Tribal Council shall consider evidencesupporting the charges and any evidence offered by the suspended member of the GamingCommission. The suspended member shall have the opportunity to present evidence, questionwitnesses and cross-examine adverse witnesses. If the Tribal Council determines the charges aresupported by the evidence, the Tribal Council may remove the member of the GamingCommission.

Cause for removal shall consist of: (I) any gross, Class I, or Class A misdemeanor or felonyconviction, or the discovery of any previous gross, Class I, or Class A misdemeanor or felonyconviction not disclosed at the time of employment; (2) any criminal act involving Tribe funds;(3) misconduct, nonfeasance or negligence during the performance of duties; (4) failure tocomply with any tribal gaming law, rule, regulation, Compact requirement, federal lawrequirement, policy, or direction as may be established from time to time by the Tribal Council;(5) unethical conduct, including, without limitation, self dealing; (6) misconduct that harms thebusiness reputation of Tribe, its services or product; (7) commission of any act of fraud or

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dishonesty; or (8) unexcused failure to attend at least three consecutive Commission meetings. ARegulatory Authority member who complies with the provisions of this Ordinance shall not beremoved during their terrn.

58-03-07 Conflict of Interest and Gift Probibition.

No member ofthe Regulatory Authority or their immediate family may have any financialinterest in any business or enterprise providing any gaming equipment, goods or services to agaming operation or its licensees. Such a financial interest does not include the financial interestresulting solely from their status as a tribal member. No member of the Regulatory Authoritymay accept any gift or thing of value from a distributor, contractor, vendor or any personproviding any gaming equipment, goods or services to a gaming operation or its licensees.

58-03-08 Powers and Duties ofthe Regulatory Authority.

The Regulatory Authority shall have the authority to regulate this Ordinance and to regulate allgambling operations, licensees and applicants governed by this Ordinance. The RegulatoryAuthority shall have the following specific powers and duties:

A. To receive, investigate and process all license applications related to the conduct of ClassII and Class I1I gaming activities on lands within the jurisdiction of the Sisseton­Wahpeton Oyate. To conduct the requisite background check. To issue licenses to allqualified gaming operations, persons and distributors who are required to be licensed bythis Ordinance. To notify the NIGC that a license has been issued, when required by thisOrdinance or federall aw;

B. To limit, condition, suspend, restrict, or revoke any license it may issue and assess finesfor violations of this Ordinance or the rules or regulations promulgated by the RegulatoryAuthority;

C. To adopt reasonable standards consistent with the size and scope of the gaming operation,including games rules, security and surveillance operations, and the prize and wageringstructure. Such standards shall be consistent with the provisions and requirement, ifany,of the Sisseton-Wahpeton Gaming Compacts;

D. To inspect all gaming equipment and supplies in a gaming operation, or stored outside ofa gaming operation, which will be used or may have been used in the gaming operation;

E. To seize, remove and impound equipment and supplies from a gaming operation for thepurpose of examination, inspection, evidence, or forfeiture, provided that the RegulatoryAuthority has reasonable cause to believe that a gaming violation has occurred and thatsuch property is securely held pending a hearing and final determination;

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F. To enter, inspect and examine the gaming operation or licensee's work area to determinecompliance with this Ordinance. Provided that the gaming operation or licenseemaintains the right to have security personnel accompany the Regulatory Authority forthe purpose of witnessing and facilitating such access;

G. To carry out the audit provisions of Section 58-01-14 of this Ordinance and to select theauditor for such purposes;

H. To access, inspect, examine, copy and audit all papers, books, and records of applicants,licensees and gaming operations when necessary to enforce this Ordinance;

1. To require verification of a gaming operation's daily gross revenues and income of anygaming activity;

J. To seize and impound any patron's winnings, provided the Regulatory Authority hasreason to believe such winnings were obtained in violation of this Ordinance or any otherapplicable law. Such winnings shall be securely held pending the outcome of a civilforfeiture hearing or a criminal proceeding;

K. To investigate alleged violations of this Ordinance, the Regulatory Authority rules,regulations, orders, Or final decisions, any Gaming Compact, and any other applicablelaws, and to take appropriate disciplinary actions. Such disciplinary action may includelicense suspension and/or revocation, the imposition of civil fines against a gamingoperation or any licensee, and/or institute appropriate legal action for enforcement;

L. To hold hearings, and to require licensees or license applicants to appear and testify underoath regarding matters related to this Ordinance. To issue subpoenas for the attendanceof witnesses and subpoenas duces tecum for the production of books, records and otherpertinent document;

M. To consult with legal counsel as needed;

N. To hear and consider a dispute between members of the gaming public and the Sisseton­Wahpeton Oyate with regard to gaming activities licensed under this Ordinance;

O. To propose an annual budget for the Regulatory Authority to the Tribal Council,including salaries;

P. To recommend to Tribal Council for approval a schedule of fines to guide the RegulatoryAuthority's discretion, which includes maximum fine limits;

Q. The Commission shall adopt and publish such rules and regulations as may be necessaryto carry out and assure compliance with the provisions of this Ordinance. Such rules and

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regulations may include the responsibilities of the Sisseton-Wahpeton Oyate to complywith any applicable federal law and any Class III Gaming Compact. Such rules andregulations may also include any Tribal Minimum Internal Control Standards that meetthe requirements established by the NIGC and/or the Gaming Compacts; the RegulatoryAuthority shall submit all proposed rules and regulations to the Sisseton-Wahpeton Oyateand all licensed gaming operations for comment at least 30 days prior to adoption. Allregulations, standards and fine schedules must be approved by the Tribal Council prior totaking effect; and

R. To take any other actions as may be reasonable and appropriate to enforce this Ordinanceand the Regulatory Authority's rules and regulations.

58-03-09 Violation.

No person may violate the provisions of this Ordinance, any rules or regulations promulgated bythe Regulatory Authority, an order or determination issued by the Regulatory Authority, theterms of a license, or the terms of any gaming compact. Any person or licensee guilty of such aviolation may be subject to license suspension, limitation or revocation, a civil fine and/or anyother sanction authorized by this Ordinance or the rules and regulations of the RegulatoryAuthority.

58-03-10 Hearings.

The Regulatory Authority shall afford a licensee or any person(s) subject to this Ordinance, theopportunity for a hearing prior to revoking, suspending, or limiting a license, or the imposition ofany other sanctions or fines. Such a hearing shall be conducted according to procedures adoptedby the Regulatory Authority.

TITLE FOlJR

LICENSING

58-04-01 License Required for Gaming Operations and Distribution of GamingEquipment.

The gaming operation and all licensees shall be required to possess an appropriate and validgaming license. Any gaming being conducted within the jurisdiction of the Sisseton-WahpetonOyate without the appropriate license is prohibited.

58-04-02 Application Forms for Primary Management Officials and Key Employees.

A. The license application form for a primary management official or a key employee shallcontain the following statement:

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In compliance with the Privacy Act of 1974, the following information isprovided. Solicitation of the information on this form is authorized by 25 U.S.C.2701, et seq. The purpose of the requested information is to determine theeligibility of individuals to be employed in a gaming operation. The informationwill be used by National Indian Gaming Commission members and staff whohave need for the information in the performance of their official duties. Theinformation may be disclosed to appropriate Federal, Tribal, State, local, orforeign law enforcement and regulatory agencies when relevant to civil, criminalOr regulatory investigations or prosecution or when pursuant to a requirement bythe Sisseton-Wahpeton Tribal Regulatory Authority or the National IndianGaming Commission in connection with the hiring or firing of an employee, theissuance or revocation of a gaming license, or investigations of activities whileassociated with the Sisseton-Wahpeton Tribal Regulatory Authority Or a gamingoperation. Failure to consent to the disclosures indicated in this notice will resultin the Sisseton-Wahpeton Oyate being unable to hire you in a primarymanagement official Or key employee position.

The disclosure of your Social Security Number (SSN) is voluntary. However,failure to supply a SSN may result in errors in processing your application.

A false statement on any part of your application may be grounds for not hiringyou, or for firing you after you begin work. Also, you may be punished by fine orimprisonment in accordance with U.S. Code, Title 18, Section 1001.

B. Any existing key employees or primary management officials who have not signedapplication forms with the Privacy Act notice or notice of false statements shall sign astatement that contains the Privacy Act and false statement notices, and consent to theroutine uses described in those notices.

58-04-03 Background Investigations.

The Regulatory Authority will perform background investigations and issues licenses accordingto requirements at least as stringent as those established by the NIGC. In conducting abackground investigation, the Regulatory Authority shall keep confidential the identity of eachperson interviewed in the course of the investigation. The Regulatory Authority shall conduct aninvestigation sufficient to make an eligibility determination. The Regulatory Authority shallrequest the following information from each primary management official and from each keyemployee:

A. Full name, other names used (oral or written), social security number(s), birth date, placeof birth. citizenship, gender, all languages (spoken or written);

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B. Currently and for the five previous years: business and employment positions held,ownership interests in those businesses and residence addresses and driver's licensenumbers;

C. The names and current addresses of at least three personal references, including onepersonal reference who was acquainted with the Applicant during each period ofresidence listed in paragraph B above;

D. Current telephone numbers for business and residence;

E. A description of any existing and previous business relationships with Indian tribes,including ownership interests in those businesses;

F. A description of any existing and previous business relationships with the gamingindustry generally, including ownership interests in those businesses;

G. The name and address of any licensing or regulatory agency with which the person hasfiled an application for a license or permit related to gaming, whether or not such licenseor permit was granted;

H. For each felony for which there is any ongoing prosecution or a conviction, the charge,the name and address of the court involved and the date and disposition;

L For each misdemeanor conviction or ongoing misdemeanor prosecution (excluding minortraffic violations), within 10 years of the date of the application, the name and address ofthe court involved and the date and disposition;

J. For each criminal charge (excluding minor traffic violations), whether or not there is aconviction, if such criminal charge is within ten years of the date of the application, an isnot otherwise listed pursuant to paragraph H and I above, the criminal charge, the nameand address of the court involved and the date and disposition;

K. The name and address of any licensing or regulatory agency with which the person hasfiled an application for an occupational license or permit, whether or not such license orpermit was granted;

L. A current photograph;

M. Any other information the Regulatory Authority deems relevant; and

N. The Regulatory Authority shall conduct a criminal history check of the state and localrecords, as well as records and information maintained by the Federal Bureau ofInvestigation. The Regulatory Authority may take an applicant's fingerprints provided its

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designated official has received adequate training from the Sisseton-Wahpeton TribalPolice or the County or State law enforcement agency.

58-04-04 Eligibility Determination.

The Regulatory Authority shall review a person's prior activities, any criminal record, andreputation, habits and associations in order to make a finding concerning the eligibility of a keyemployee or primary management official for employment in a gaming operation. TheRegulatory Authority will interview a sufficient number of knowledgeable people, such as formeremployers and personal references of the applicant, to provide a basis for making an eligibilitydetermination. The Regulatory Authority will document all potential problem areas noted anddisqualifying information. If the Regulatory Authority determines the employment of the personposes a threat to the public interest or to the effective regulation of gaming or creates or enhancesdangers of unsuitable, unfair Or illegal practices and methods and activities in the conduct ofgaming, such person shall not be employed in a key employee or primary management officialposition.

58-04-05 Procedures for Forwarding Applications and Reports for Key Employeesand Primary Management Officials to the NIGC.

When a key employee or primary management official begins work at a gaming operationauthorized by this ordinance, the Regulatory Authority shall forward to the NIGC a completedapplication for employment and conduct the background investigation and make the eligibilitydetermination. The Regulatory Authority shall forward background investigation reports to theNIGC within 60 days after an employee begins work. The gaming operation shall not employ asa key employee or primary management official a person who does not have a license after 90days.

58-04-06. Report to the National Indian Gaming Commission.

A. The Regulatory Authority shall prepare and forward to the National Indian GamingCommission an investigative report on each background investigation. The Regulatory Authorityshall submit, with the report, a copy of the eligibility determination made in accordance with thisOrdinance. An investigative report shall include all of the following:

1. Steps taken in conducting a background investigation;

2. Results obtained;

3. Conclusions reached; and

4. The basis for those conclusions.

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B. If a license is not issued to an applicant, the Regulatory Authority shall notify the NIGCand may forward copies of its eligibility determination and investigative report to the NIGC forinclusion into the Indian Gaming Individuals Records System. The Regulatory Authority shallretain key employee and primary management official applications for employment and anybackground investigation reports for inspection by the Chairman of the NIGC, the Chairman'sdesignee, for no less than three years from the date of termination of employment.

58-04-07 Granting a Gaming License.

A. If, within a thirty day period after the NIGC receives a report, the NIGC notifies theRegulatory Authority that it has no objection to the issuance of a license pursuant to alicense application filed by a key employee or a primary management official for whomthe Regulatory Authority has provided an application and investigative report to theNIGC, the Regulatory Authority may issue a license to the applicant.

B. The Regulatory Authority shall respond to a request for additional information fromthe Chairman of the NlGC concerning a key employee or a primary management officialwho is the subject of a report. Such a request shall suspend the 3D-dayperiod underparagraph (A) of this section, until the Chairman of the NIGC receives the additionalinformation.

C. If, within the thirty (30) day period described above, the NIGC provides theRegulatory Authority with a statement itemizing objections to the issuance of a license toa key employee or primary management official for whom the Regulatory Authority hasprovided an application and investigative report to the NIGC, the Regulatory Authorityshall reconsider the application, taking into account the objections itemized by the NlGC.The Regulatory Authority shall make the final decision whether to issue a license to such

applicant.

58-04-08 License Suspension.

If, after the issuance of a gaming license, the Regulatory Authority receives reliable informationthrough their own investigations or from the NIGC that indicates that a key employee or aprimary management official is not eligible for employment under this Ordinance, the RegulatoryAuthority shall notify the licensee and the affected gaming operation in writing. The RegulatoryAuthority shall notify the licensee of the time and the place for any hearing on the proposedrevocation of the employee's license, as provided in Section 58-03-10 of this Ordinance. After arevocation hearing, the Regulatory Authority shall decide to revoke or to reinstate a gaminglicense. The Regulatory Authority shall notify the N1GC in writing of its decision.

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58-04-09 Emergency Action, Suspension Without Hearing.

To respond to, or avoid an emergency, the Regulatory Authority may temporarily suspend alicense for up to fifteen days without a hearing when such extraordinary action is essential toprotect the public safety or the integrity of gaming conducted on the Lake Traverse Reservation.The Regulatory Authority may extend such a temporary suspension for an additional seven days.

58-04-10 License Required For Distributors of Gaming Equipment.

Any person, organization or entity wishing to sell, lease or otherwise distribute gamingequipment must first apply for and obtain a license from the Regulatory Authority. Such person,organization, or entity selling, leasing, or otherwise distributing gambling equipment to theSisseton-Wahpeton Oyate shall be required to possess and display, or display upon request, anappropriate and valid gaming license. The form of the application and the license fees shall beestablished by the Regulatory Authority.

58-04-11 Reimbursement for Costs of License Investigations.

Any applicant for a license under this Ordinance shall pay the Regulatory Authority a reasonablelicense fee at the time of application. If additional extraordinary investigation is necessary todetermine whether the applicant is properly qualified for a license, the Regulatory Authority mayrequire an additional fee, not to exceed the amount of the original fee.

58-04-12 Fraud on Application.

It shall be unlawful for any applicant to provide false information to the Regulatory Authoritywhen applying for a license. The penalty for providing false information is revocation of thelicense and cost reimbursement.

58-04-13 License as a Revocable Privilege.

Every gaming license is a revocable privilege, and no license holder shall be deemed to have avested interest in the license. The burden of proving qualifications to hold any license rests at alltimes on the applicant or licensee. Acceptance of a license constitutes agreement on the part ofthe licensee to be bound by this Ordinance, the rules and regulations and any order ordetermination of the Regulatory Authority. It is the responsibility of the licensee to be informedofthe contents of this Ordinance, the rules and regulations and any order Or determination of theRegulatory Authority. Ignorance of such laws, rules, regulations, orders or determination willnot excuse any violation.

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LAKE TRAVERSE RESERVATION

OLD AGE'"X'Y 80\ :;(19' AGEt-;CY VILl,A(;E. SOUTH DAKOTA :;7~6c-O:;09- PHONE: \t\U5,1 6l)t;;·:'~)\ 1

TRIBAL COUNCIL RESOLUTION NO, SWO-04-081

Gaming Ordinance Amendments of 2004

WHEREAS, The Sisseton-Wahpeton Oyate of the Lake Traverse Reservation isorganized under a Constitution and By-laws adopted by the members ofthe Tribe on August 1-2, 1966 and approved by the Commissioner ofIndian Affairs on August 25, 1966; and,

WHEREAS, The said Constitution and By-laws mandates at ARTICLE II, Section 1, thatthe Tribal Council shall have the power: (a) to represent the Tribe in allnegotiations with Federal, State and local governments; (d) to make rulesgoverning the relationship of the members of the Tribe, to Tribal property,and to one another as members of the Tribe; (f) to deposit Tribal funds tothe credit of the Tribe; (g) to take actions by ordinance, resolution orotherwise which are reasonably necessary to carry into effect theforegoing purposes; (h) to promote public health, education, charity, andsuch other services as may contribute to the social advancement of themembers of the Tribe; and, (i) to adopt resolutions regulating theprocedures of the Tribal Council, its officials and committees in theconduct of Tribal Affairs; and,

WHEREAS, In 1993, the Tribal Council enacted the Sisseton-Wahpeton Sioux TribeGaming Ordinance as Chapter 58 of the Sisseton-Wahpeton Tribal Code,which has been amended from time to time; and,

WHEREAS, The Tribal Council has determined it is necessary to amend and revisethe Sisseton-Wahpeton Oyate Gaming Ordinance; and,

WHEREAS, The Tribal Council convened a Gaming Task Force to makerecommendations pertaining to amendments and other revisions to theGaming Ordinance, which consisted of members of Tribal Council, theGaming Commission, Gaming Management and legal counsel; and,

WHEREAS, The Gaming Task Force recommends a new Gaming Ordinance that isbased substantially upon the National Indian Gaming Commission'smodel ordinance and the Sisseton-Wahpeton Oyate's regulatory structureand regUlatory needs; and,

WHEREAS, The Sisseton Wahpeton Oyate's Legal Counsel has been in regularcontact with the National Indian Gaming Commission's representatives inorder to inform the federal agency of the 2004 Amendmentstn tb'"

Gaming Ordinance; and,

TRIBAL COUNCILRE~_.·ION NO. SWO-o4-0812004 Gaming Ordinance Amendments

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WHEREAS, The National Indian Gaming Commission has conducted an informalreview of the 2004 amendments to the Gaming Ordinance and hasrecommended one minor change, which has been incorporated by theSisseton-wahpeton Oyate's Legal Counsel.

NOW, THEREFORE BE IT RESOLVED, that the Tribal Council of the SissetonWahpeton Oyate hereby authorizes, adopts and enacts the attachedSisseton-Wahpeton Gaming Ordinance; and,

FURTHER, BE IT RESOLVED, This Gaming Ordinance shall be in futl force and effecton the date of formal approval and adoption by he Tribal Council, andshall remain in effect pending approval from the National Indian Gaming .Commission; and,

FINALLY, BE IT RESOLVED, That the Tribal Council directs Attorney Greg Paulson ofBlueDog, Olson & Small, P.L.L.P. to submit the Gaming Ordinance to theNational Indian Gaming Commission, submit the addftional documentsrequired by the National Indian Gaming Commission's regulations andrequest immediate review and approval.

CERTIFICATION

We, the undersigned duly electeef Chairman and Secretary of theSisseton-Wahpeton Oyate Tribal Council, do hereby certify that the above resolutionwas dUly adopted by the Sisseton-Wahpeton Oyate Tribal Council, which is composedof 10 members (representing a total of 15 Tribal Council weighted votessnef twoExecutive Committee votes for a total of 17 votes) of whom ~ constituting a quorum,were present at a Tribal Council meeting, duly noticed, called, convened and heldat theTiWakan Tio Tipi, Agrmcy Village, South Dakota, August 3, 2004, by a vote 0'10 for, Qopposed, J abstained, 2. absent from vote, 1 not voting, and that said Resolution hasnot been rescinded Of amended 1fT any way.

Dated this f}h day ofAugust. 2004.

Scott Ge , Tribal Vice-ChairmanSisseton-Wahpeton Oyate

TRIBAL COUNCIL REsr ION NO. SWO-04-0812004 Gaming Ordinance Amendments

ATIEST:

~~~ '.,?:;~>f.'~- G-,-: =

Michael Peters, Tribal SecretarySisseton-Wahpeton Oyate

Original copy to NIGC

cc: Legal Cou~I-BlueDogLe al Cou~tr-TribalSWGCDSCDMCDCCCEO

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